Shareholder Class Action Filed Against Pixelplus Co., Ltd. by the Law Firm of Schiffrin & Barroway, LLP

26 April 2006

The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:

Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of all securities purchasers of Pixelplus Co., Ltd. (Nasdaq: PXPL) ("Pixelplus" or the "Company") from December 21, 2005 through April 11, 2006, inclusive (the "Class Period").

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.

The Complaint charges Pixelplus and certain of its officers and directors with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that Pixelplus failed to disclose and misrepresented the following material adverse facts which were known to the defendants or recklessly disregarded by them: (1) that the Company incorrectly accounted for sales to its consolidated subsidiary, Pixelplus Technology Inc.; (2) that as a result of this improper accounting, the Company's revenues were materially overstated throughout the Class Period; (3) that the Company's financial statements were in violation of Generally Accepted Accounting Principles; (4) that the Company lacked adequate internal controls; and (5) that as a consequence of the foregoing, the Company's financial results were materially overstated at all relevant times.

Three and one-half months after going public, after the market closed on April 11, 2006, Pixelplus shocked the market when it announced that, in connection with the work completed to date on its fiscal year-end 2005 audit, it had decided, pursuant to discussions with its independent auditors, that PTI, a Taiwan affiliate, should be recognized as a consolidated subsidiary commencing fiscal year 2005. Accordingly, Pixelplus' audited financial statements for the fiscal year 2005 would consolidate PTI's results of operation. As a result of the aforementioned accounting change, Pixelplus announced that the Company's previously announced unaudited financial results for the fourth quarter of fiscal year 2005 and for the fiscal year 2005 would need to be corrected. After absorbing this news, the market reacted swiftly and negatively. Shares of the Company's stock sank $2.72 per ADR, or 37.3 percent, to close, on April 12, 2006, at $4.58 per ADR.

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com.

If you are a member of the class described above, you may, not later than June 16, 2006, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action.

CONTACT: Schiffrin & Barroway, LLP

Darren J. Check, Esq.

Richard A. Maniskas, Esq.

280 King of Prussia Road

Radnor, PA 19087

1-888-299-7706 (toll-free) or 1-610-667-7706

Or by e-mail at info@sbclasslaw.com

Source: prnewswire

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